Business Builder Plan Blog

Calculating investment property cash flow is not a complicated process. It is as simple to compute as subtracting expenses and adding income from real estate investments. The remaining profits are the cash flow that is available.

Cash flow should be easy to budget for investors, but investors are oftentimes incorrect in their estimates. Too many deficits in cash flow budgets could force investors to claim bankruptcy. real estate investors can avoid creating negative cash flow by budgeting for emergencies and maintenance. Adding an extra ten percent to maintenance expense estimates can mean the difference between declaring profits rather than losses for investment properties.

The stock market is down 40% from last year. real estate is down over 30% nationally. Everyone is currently scared to invest in anything. The financial press is telling us on a daily basis that financial investments are very “risky” and we should be careful with our money. Madoff stole $60 billion from investors. Ok it is time to all go home and jump under the covers. This is certainly no time to be out asking other people to invest in your real estate investing business.

Right! Well maybe not? Maybe it is actual a great time to be asking for money and there are many compelling reasons why this is the case today.

Top 10 Reasons Why It's Easier To Buy A $5,000,000 Apartment Building Than A Single Family Investment Property.

The day my life changed forever. It started with a phone from my good friend and banker of 15 plus years Joe, I cant believe that Im going to say this, but your mortgage application has been denied. (I had done hundreds of residential deals, had an 800 credit score and 25% down). The day ended with a chance encounter with an old friend that I had not seen in 10 years that said to me Its easier to buy a $5,000,000 apartment complex than a single family investment home I didnt quite understand it at the time, but much to my surprise, it was true.

Flipping houses can be a great way to earn a living from home, if you develop a strategy that works for you in an area you know, and then start slowly, keeping your strategy in mind at all times. If you do this, flipping houses can be a profitable business but it can also be disastrous, if you don’t avoid making costly mistakes. Following certain guidelines helps make the process less risky.

What Is Flipping?

“Flipping” is the purest form of “buy low and sell high”. A Flipper buys homes at a price considerably below the market and sells them at the market price. In fact, sometimes the house sells for quite a bit above market. Pros will tell you that you need to make your money on the front end by buying properties at least 30% below market value. Real estate is often bought at 50% or less of the market value. This can generate a significant profit in a short length of time.

Most people idea of home improvements are not really even improvements. Most people waste money on their home improvements or over improvement or build to such unique tastes that they have no value.

Flooring, most Realtors will tell you and their clients to just rip it up and put in some thing that you like when buying a home, realize that beautiful tile floor that to you is stunning, is something that will probably add no value to your house and it will be a dump after you sell.

Real Estate Investing

From a historical perspective, investing in real estate is almost as old as the construction of property itself. Over the last two weeks, events have unfolded that have reminded me of an important truism in real estate investing. Whether you are brand new to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.

Preforeclosure investing is one of the most lucrative financial vehicles you can leverage to build wealth very quickly. In this market where are seeing a surge in foreclosures, opportunities to make huge profits are more abundant than ever. Here are some frequently asked questions (FAQs) about the world of preforeclosure investing.

1. What is the difference between preforeclosure investing and other types of foreclosure investing?

There are three phases in every foreclosure lifecycle:

• Preforeclosure: The period after which the mortgage company has filed a Notice of Default legal notice in the newspaper or a Lis Pendens lawsuit in the county court and before the house goes on sale at a foreclosure auction. Investors can negotiate directly with homeowners to buy the property and stop the foreclosure auction from taking place.